April PMI declines as demand begins to ease

| 0 Comments
PMI decline.jpgThe seasonally adjusted Kagiso Purchasing Managers Index (PMI) fell for the second consecutive month, declining by 1.4 index points to reach 53.7 in April 2012.

There are indications that the Index could moderate even further, says Abdul Davids, Head of Research at Kagiso Asset Management.

The New Sales Orders Index, the largest weighted PMI sub-component, declined to 55.4 in April from 59.7 in March.

"While this still reflects robust demand for factory goods, we have seen this slowing over the last few months. This is in line with the trend we are currently seeing in Europe, South Africa's key manufacturing export market," says Davids.

The PMI leading indicator (new sales orders as a ratio of inventories) fell to below 1 (0.96) for the first time since December 2011 - a reading below 1 indicates that inventories are too high relative to the demand for manufactured goods, explains Davids.

The index measuring expected business conditions over the next six months experienced the largest decline after losing 6.2 points to reach 56.2, while the Business Activity Index stabilised at a fairly robust level of 57.7 during April. This is indicative of sustained strong manufacturing production growth, says Davids.

The good news on the pricing front is that the Price Index declined to 71.1, its lowest level since January 2011.

However, Davids points out that the spiralling oil price poses the largest upside risk to input costs going forward. "If the oil price were to stabilise at below US$120 per barrel, we would see a sustainable moderation in factory sector input costs," he says.

At 48.8, the Employment Index remained just below the 50 point mark. Although it has been improving, this Index still points to a contraction in employment levels in the manufacturing sector.

Download the report

Leave a comment


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the